Talking Points
- Chancellor Angela Merkel described the Euro as “too weak” for Germany.
- In response, the common currency soared.
- Check out the DailyFX Economic Calendar and see what live coverage of key event risk impacting FX markets is scheduled for the week on the DailyFX Webinar Calendar.
German Chancellor Angela Merkel gave the Euro a boost Monday, saying it is “too weak” because of the European Central Bank’s monetary policy. Speaking to schoolchildren in Berlin, she said “The Euro is too weak… due to the ECB’s policy and, with this, German goods are comparatively cheap”.
Her comments follow persistent criticism of the ECB’s loose monetary policy by her finance minister Wolfgang Schaeuble, who has said that it increases the risk a new global financial crisis – a sentiment that ECB President Mario Draghi has consistently denied.
Following the Chancellor’s comments, EUR/USD surged to its highest level since November 9 last year.
Chart: EUR/USD Daily Timeframe (November 2016 – May 2017)
The Euro also climbed against the British Pound, which again failed to make significant progress above the $1.30 level.
Chart: EUR/GBP Five-Minute Timeframe (May 22 Intraday)
--- Written by Martin Essex, Analyst and Editor
To contact Martin, email him at martin.essex@ig.com
Follow Martin on Twitter @MartinSEssex
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